v3.26.1
Income and Expenses Relating to Life Insurance Operations
12 Months Ended
Mar. 31, 2026
Insurance [Abstract]  
Income and Expenses Relating to Life Insurance Operations
23. Income and Expenses Relating to Life Insurance Operations
Life insurance premiums and related investment income in fiscal 2024, 2025 and 2026 consist of the following:
 
    
Millions of yen
 
    
2024
    
2025
    
2026
 
Life insurance premiums
   ¥ 459,655      ¥ 481,432      ¥ 506,120  
Life insurance related investment income*
     99,268        33,827        134,039  
  
 
 
    
 
 
    
 
 
 
   ¥ 558,923      ¥ 515,259      ¥ 640,159  
  
 
 
    
 
 
    
 
 
 
 
*
Life insurance related investment income in fiscal 2024, 2025 and 2026 include net unrealized holding gains of ¥43,301 million, ¥2,577 million and ¥
48,946
 million on equity securities held as of March 31, 2024, 2025 and 2026, respectively.
Life insurance premiums include reinsurance benefits, net of reinsurance premiums. For fiscal 2024, 2025 and 2026, reinsurance benefits and reinsurance premiums included in life insurance premiums are as follows:
 
    
Millions of yen
 
    
2024
   
2025
   
2026
 
Reinsurance benefits
   ¥ 3,452     ¥ 10,634     ¥ 20,520  
Reinsurance premiums
     (4,937     (5,119     (5,298
Life insurance premiums and related investment income include net realized and unrealized gains or losses from investment assets under management on behalf of variable annuity and variable life policyholders, and net gains or losses from derivative contracts, which consist of gains or losses from futures and foreign exchange contracts, entered to economically hedge a portion of the minimum guarantee risk relating to variable annuity and variable life insurance contracts. In addition, the fair value option was elected for the entire variable annuity and variable life insurance contracts to offset earnings recognized for gains or losses from the investment assets managed on behalf of variable annuity and variable life policyholders, derivative contracts and the changes in the fair value of reinsurance contracts. Life insurance costs include the net amount of the changes in fair value of the variable annuity and variable life insurance contracts for which the fair value option was elected and insurance costs recognized for insurance and annuity payouts as a result of insured events. Certain subsidiaries have elected the fair value option for certain reinsurance contracts to partially offset the changes in fair value recognized in earnings of the policy liabilities and policy account balances attributable to the changes in the minimum guarantee risks of the variable annuity and variable life insurance contracts, and the changes in the fair value of the reinsurance contracts were recorded in life insurance costs.
 
 
The portion of the total change in the fair value of variable annuity and variable life insurance contracts that results from a change in the instrument-specific credit risk is recognized in other comprehensive income (loss), net of applicable income taxes.
The above mentioned gains or losses relating to variable annuity and variable life insurance contracts for fiscal 2024, 2025 and 2026 are mainly as follows:
 
    
Millions of yen
 
    
2024
   
2025
   
2026
 
Life insurance premiums and related investment income :
      
Net realized and unrealized gains or losses from investment assets
   ¥ 40,821     ¥ (3,496   ¥ 33,290  
Net gains or losses from derivative contract
s
:
     (3,568     (372     (1,559 )
 
Futures
     (3,046     (262     (1,433 )
Foreign exchange contracts
     (522     (110     (126 )
Life insurance costs :
      
Changes in the fair value of the policy liabilities and policy account balances
   ¥ 3,208     ¥ (30,998   ¥ 2,041  
Insurance costs recognized for insurance and annuity payouts as a result of insured events
     26,997       23,706       23,553  
Changes in the fair value of the reinsurance contracts
     1,890       200       1,423